RBI imposes Rs 1.45 crore penalty on Central Bank of India

The Reserve Bank of India (RBI) on Friday said it has imposed a penalty of Rs 1.45 crore on the Central Bank of India for non-compliance with certain directions
RBI imposes Rs 1.45 crore penalty on Central Bank of India
RBI imposes Rs 1.45 crore penalty on Central Bank of India

New Delhi: The Reserve Bank of India (RBI) on Friday said it has imposed a penalty of Rs 1.45 crore on the Central Bank of India for non-compliance with certain directions related to 'loans and advances' and 'customer protection'.

The RBI had conducted a statutory inspection for Supervisory Evaluation (ISE 2022) of the Central Bank of India with reference to its financial position as of March 31, 2022.

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A notice was issued to the bank, advising it to show cause as to why a penalty should not be imposed on it for its failure to comply with the directions, the RBI said.

After considering the bank's response, the RBI found that charges against the bank were sustained.

The bank sanctioned a working capital demand loan to a Corporation against amounts receivable from the government by way of subsidies.

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It also failed to credit (shadow reversal) the amount involved in a few instances of unauthorised electronic transactions to the customer’s account within the stipulated time.

In another release, the RBI said a penalty of Rs 96.4 lakh has been imposed on Sonali Bank PLC for non-compliance with certain norms, including KYC Directions, 2016.

In both cases, the RBI said the penalties were based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transactions or agreements entered into by the entities with their customers.

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